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Apple's (Nasdaq: AAPL) G5 Xserve and QuickTime technology is now an option for content providers streaming mobile audio and video to Sprint's (NYSE: S) PCS Vision network following its certification by Sprint.
Sprint's PCS Vision is part of its nationwide PCS cellular phone network that provides wireless Internet connectivity and multimedia content from providers such as ABC News, Fox Sports, Chris Matthews and the Weather Channel, among others.
The Xserve, running Mac OS X, includes the QuickTime Streaming server, which enables content authors to deliver encoded audio and video across third generation (3GPP and 3GPP2) mobile networks, such as Sprint's, as well as through the traditional venues of Web browser and the QuickTime desktop client software.
Frank Casanova, Apple's senior director of QuickTime product marketing, said in an interview with MacNewsWorld that Sprint's certification today has cracked open a new business channel in the U.S. for the Cupertino, California, Macintosh maker.
Server Sales
"While we have been working with telco companies in Europe and Asia, it is exciting to see this emerging in the United States," he said.
In its most recent fiscal quarter, Apple sold 13,000 Xserves. This certification will surely increase that number, and, according to Apple senior product manager Benjamin Feinman, also generated a new server customer in Sprint.
"Sprint is using the Xserve and QuickTime Streaming server for distribution of Sprint TV, which is included in the PCS Vision plan," Feinman said.
PCS Vision requires customers to use the latest mobile handsets. These multimedia-enabled phones can also record and send 15-second videos, via e-mail, that can be viewed on PCs and Macs via QuickTime.
Sprint's wireless division, which includes PCS Vision, has grossed US$7 billion so far this year, according to the company's most recent SEC filings, with an operating income of $674 million. This is a nearly $1 billion increase over the same period in 2003.
Familiar Territory, Open Standards
Kevin Hunter, development manager at Sprint, said his firm is all about open standards, as they have to provide choices to PCS Vision network content providers.
"Apple has a very good reputation of following multimedia standards to make things easier for content providers and for our products," Hunter said. "The certification illustrates the confidence we have in Apple's commitment to standards."
While OS X at its core is built off of many open standards, the familiarity of its underlying Unix operating system may be a welcoming factor to content engineers.
More importantly, the International Standards Organization's (ISO) adoption of the QuickTime file format in MPEG-4 is increasingly drawing the interest of streaming content creators and distributors.
Forrester Research principal analyst Charles Golvin suggested that aside from open standards, this is about flexibility for Sprint -- which is also working with content platforms based on proprietary formats.
Vertical Sector
"The big players here are RealNetworks (Nasdaq: RNWK) and, going forward, Microsoft (Nasdaq: MSFT) [Windows Media]. I believe that Sprint is executing a hedge strategy -- best to not make formats an issue for those companies supplying content -- as witnessed by their existing agreement with Real," Golvin added.
Golvin indicated he does not believe growth in the general enterprise segment is as important for Apple as is the underlying vertical streaming-content sector.
"They are providing a solution that easily enables its customers to develop content that can then be distributed through multiple channels," Golvin said.
Apple officials suggested other known content providers were using the Xserve/QuickTime combo for mobile streaming, but they declined to disclose details at this time.
